McPherson's,an ice cream joint,recently entered into an agreement by which it allowed independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration.This agreement created a(n)________ type of contractual retail association.
A)corporate chain
B)voluntary chain
C)franchise organization
D)independent intermediary
E)retailer cooperative

Question

Quizplus · Accepted Answer

The given scenario fits the description of a franchise organization, where an independent businessperson is granted the right to sell a company's products under the company's name in exchange for a fee or royalty payment. The other options don't fit the description accurately. A corporate chain is a group of retail stores owned and operated by a single company, while a voluntary chain is a group of independent retailers who join together to form a cooperative to achieve economies of scale. An independent intermediary is a middleman who helps connect buyers and sellers, and a retailer cooperative is a group of retailers who come together to pool their resources for mutual benefits.

McPherson's,an Ice Cream Joint,recently Entered into an Agreement by Which